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Switzerland Plans to Close Loopholes that Let International Sporting Organizations Be Above the Law

3 minute read

Switzerland is not a stranger to scandals – its banks have long been embroiled in money laundering and tax evasion. Now, the international football organization headquartered in this Alpine nation is in turmoil as well.

The arrest on Wednesday of seven FIFA officials on charges of corruption involving more than $150 million in bribes and kickbacks has plunged the soccer’s controversial governing body into crisis.

Swiss police confiscated documents and electronic data after raiding FIFA’s Zurich headquarters on Wednesday as part of an on-going investigation into money laundering and fraud that came to light after the organization awarded the 2018 and 2022 World Cups to Russia and Qatar respectively.

As the detained officials are holed up in a luxury Zurich hotel awaiting extradition to the U.S to face criminal corruption charges, some politicians here claim that the abuses went unnoticed because the organization had not been sufficiently scrutinized. “FIFA likes being based in Switzerland because it enjoys very loose governmental and financial oversight,” right-wing parliamentarian, Roland Buechel, writes on his website.

However, it may soon become more difficult for sports organizations to engage in illegal activities. Last December, the parliament passed a law spearheaded by Buechel that would increase the government oversight of FIFA and other sporting bodies based in Switzerland, which have had little scrutiny.

Currently, FIFA, along with about 60 other Switzerland-based sporting bodies – including the International Olympic Committee (IOC) – operates under an “association” status, which means it is exempt from Swiss anti-corruption laws that govern all businesses. Or, as Buechel notes, “FIFA is organized like a small yodeling association in a mountain village. They should be structured like a proper company.”

Perhaps because of the lack of stricter oversight, other Switzerland-based sporting bodies had also been at times embroiled in controversy – in 1998, for instance, several IOC members were charged with taking bribes worth millions of dollars from the Salt Lake City Bid Committee. In 2009, FIFA’s sister organization, The Union of European Football Associations, was involved in a betting scandal, when it tried to influence the outcome of soccer games. And a couple of years ago, the International Cycling Federation faced heavy criticism in the wake of doping scandals like that of the former professional racing cyclist, Lance Armstrong.

The proposed law would designate top executives of sports organizations like FIFA’s Sepp Blatter or IOC’s head Thomas Bach as “politically exposed persons,” which means that their bank accounts would be carefully monitored for suspicious activities.

This legislation is scheduled to be debated in parliament next week, but, due to the notoriously slow nature of the country’s legislative process, may not be enacted until 2017.

In the meantime, Buechel and other lawmakers who are working on the new legislation are hoping that, from now on, the only kickbacks in the sports industry will happen on the soccer field.

Stunning similarities of the 2014 World Cup

A silhouette of Portugal's Cristiano Ronaldo is seen reacting during their 2014 World Cup Group G soccer match agaisnt Germany at the Fonte Nova arena in Salvador
Left: Argentina's Lionel Messi prepares to shoot a corner kick during the World Cup round of 16 soccer match between Argentina and Switzerland at the Itaquerao Stadium in Sao Paulo. Right: A silhouette of Portugal's Cristiano Ronaldo is seen reacting during their match against Germany at the Fonte Nova arena in Salvador.Victor R. Caivano—AP; Dylan Martinez—Reuters
Left: Argentina soccer fans celebrate as they travel on a train towards the Corinthians arena at the Luz Station before the match between Argentina and Switzerland. Right: Fans of England gather in a bar ahead of the England's match against Uruguay in Sao Paulo, Brazil.
Left: Argentina soccer fans celebrate as they travel on a train towards the Corinthians arena at the Luz Station before the match between Argentina and Switzerland. Right: Fans of England gather in a bar ahead of the England's match against Uruguay in Sao Paulo, Brazil. Nacho Doce—Reuters; Oli Scarff—Getty Images
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Left: US fans cheer before the start of the match between the US and Belgium in Chicago. Right: Mexico's fans celebrate holding a mask of Mexico's head coach Miguel Herrera after the group A World Cup soccer match between Croatia and Mexico at the Arena Pernambuco.Tannen Maury—EPA; Ricardo Mazalan—AP
A reflection of cheering fans is seen before the 2014 World Cup opening match between Brazil and Croatia at the Corinthians arena in Sao Paulo
Left: A reflection of cheering fans is seen before the 2014 World Cup opening match between Brazil and Croatia at the Corinthians arena in Sao Paulo. Right: Brazilian fans await the kick off of a Group A football match between Brazil and Croatia at the Corinthians Arena in Sao Paulo.Ivan Alvarado—Reuters; Odd Andersen—Getty Images
Brazil's Neymar controls the ball against Cameroon during their 2014 World Cup Group A soccer match at the Brasilia national stadium in Brasilia
Left: Argentina's Lionel Messi fights for the ball during their match against Iran at the Mineirao stadium in Belo Horizonte. Right: Brazil's Neymarcontrols the ball against Cameroon during their match at the Brasilia national stadium in Brasilia.Kai Pfaffenbach—Reuters; Dominic Ebenbichler—Reuters
Fan of the U.S. is pictured before their 2014 World Cup Group G soccer match against Portugal at the Amazonia arena in Manaus
Left: Fans of Brazil during the game between Brazil vs Germany in Sao Paulo, Brazil. Right: A US fan before their 2014 World Cup Group G soccer match against Portugal at the Amazonia arena in Manaus.Victor Moriyama—Getty Images; Dylan Martinez—Reuters
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Left: Colombia's midfielder James Rodriguez reacts as he leaves the pitch after the quarter-final football match between Brazil and Colombia at the Castelao Stadium. Right: Brazil's Neymar reacts to a missed shot during the 2014 World Cup quarter-finals between Brazil and Colombia at the Castelao arena. Eitan Abramovich—AFP/Getty Images; Jorge Silve—Reuters
World Cup Fans Gather To Watch Matches In Rio
Left: A group of Chilean soccer fans walk through the streets as they wait for their team to play Spain during the World Cup. Right: Fans of England wearing full-body suits pose for a photograph in a bar before the England match against Uruguay on in Sao Paulo.Joe Raedle—Getty Images; Oli Scarff—Getty Images
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Left: Argentine striker Lionel Messi celebrates his goal against Iran during their match in Belo Horizonte. Right: Costa Rica's Joel Campbell celebrates with the match ball after scoring against Uruguay during their match at the Castelao stadium.Gustavo Andrade—AFP/Getty Images; Dominic Ebenbichler—Reuters
Nuns from the enclosed monastery of Imaculada Conceicao, celebrate their victory at the end of the 2014 World Cup quarter-final soccer match between Brazil and Colombia in Piratininga
Left: Patients at the Asuncion Psychiatric Hospital watch the first match of the World Cup between Brazil and Croatia, in Asuncion, Paraguay. Right: Nuns from the enclosed monastery of Imaculada Conceicao celebrate Brazil's victory as they watch on television.Jorge Saenz—AP; Nacho Doce—Reuters
Ivory Coast's Serey Die is seen from the back during their 2014 World Cup Group C soccer match against Japan at the Pernambuco arena in Recife
Left: Brazil's Neymar stands during the 2014 World Cup Group A soccer match between Brazil and Mexico at the Right: Ivory Coast's Geoffroy Serey Die is seen from the back during their 2014 World Cup Group C soccer match against Japan.Marcelo del Pozo—Reuters; Brian Snyder—Reuters;
Left: Portugal fans pose prior to the Group G match between Germany and Portugal at the Fonte Nova Arena in Salvador, Brazil. Right: Brazil fans pose prior to the game between Brazil vs Germanyin Belo Horizonte, Brazil.
Left: Portugal fans pose prior to the Group G match between Germany and Portugal at the Fonte Nova Arena in Salvador, Brazil. Right: Brazil fans pose prior to the game between Brazil vs Germanyin Belo Horizonte, Brazil.Odd Andersen—AFP/Getty Images; Nilton Fukuda—DPA/ZUMA Wire
England's goalkeeper Hart rolls inside the goalpost after Italy's Balotelli scored during their 2014 World Cup Group D soccer match at the Amazonia arena in Manaus
Left: Brazil's forward Neymar reacts after missing a goal opportunity during a match between Brazil and Mexico in the Castelao Stadium. Right: England's goalkeeper Joe Hart rolls inside the goalpost during their 2014 World Cup Group D soccer match at the Amazonia arenaFrancois Xavier Marit—AFP/Getty Images; Francois Marit—Reuters
A fan of Argentina waits for the start of their 2014 World Cup Group F soccer match against Bosnia at the Maracana stadium in Rio de Janeiro
Left: A Japan fan looks on before the 2014 World Cup Group C soccer match against Colombia at the Pantanal arena Right: A fan of Argentina waits for the start of their 2014 World Cup match against Bosnia at the Maracana stadium in Rio de Janeiro. Jorge Silva—Reuters;Pilar Olivares—Reuters
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Left: A life-size image of a woman promoting a shop stands in the street where children play soccer in the Pelourinho neighborhood of Salvador, Brazil. Right: Local Indian footballers carry cutout portraits of Brazilian soccer player Neymar and Argentine soccer player Lionel Messi to a local football club in Kolkata, India Rodrigo Abd—AP; Dibyangshu Sarkar—AFP/Getty Images
Colombia's fans hold toy figurine of Colombia's Falcao as they watch a broadcast of the 2014 World Cup round of 16 game between Colombia and Uruguay, at Bolivar Square in Bogota
Left: Argentina soccer fans hold miniature Lionel Messi dolls while watching a telecast of the World Cup match between Argentina and Nigeria in Porto Alegre, Brazil. Right: A Colombian fan holds a toy figurine of Colombia's national soccer player Falcao as they watch a broadcast of the World Cup in Bogota, Columbia. Nabor Goulart—AP; John Vizcaino—Reuters
Left: Lionel Messi of Argentina controls the ball during the match between Argentina and Switzerland at Arena de Sao Paulo. Right: Colombia's James Rodriguez scores a goal during the match against Uruguay e at the Maracana stadium.
Left: Lionel Messi of Argentina controls the ball during the match between Argentina and Switzerland at Arena de Sao Paulo. Right: Colombia's James Rodriguez scores a goal during the match against Uruguay e at the Maracana stadium.Matthias Hangst—Getty Images; Felipe Dana—Reuters
Brazil Soccer WCup Argentina
Left: Argentina fans pose before a quarter-finals match between Argentina and Belgium in Brasilia, Brazil. Right: A man wearing a horse mask, stands in the middle of Argentine fans celebrating their team's victory in Rio de Janeiro, Brazil.Liu Dawei—Xinhua; Leo Correa—AP
Left: A Mexico soccer fan cries after her team was defeated by the Netherlands inside the FIFA Fan Fest area in Rio de Janeiro. Right: A U.S. soccer fan watches his team's World Cup match against Belgium on a live telecast inside the FIFA Fan Fest area in Rio de Janeiro.
Left: A Mexico soccer fan cries after her team was defeated by the Netherlands inside the FIFA Fan Fest area in Rio de Janeiro. Right: A U.S. soccer fan watches his team's World Cup match against Belgium on a live telecast inside the FIFA Fan Fest area in Rio de Janeiro.Leo Correa—AP (2)
Left: A fan dressed as Captain America looks on after Belgium's 2-1 victory in extra time during World Cup match between Belgium and the US. Right: A Brazil fan wearing a mask depicting Neymar sits in the stands at the end of the World Cup semi-final match between Brazil and Germany at the Mineirao stadium in Belo Horizonte, Brazil.
Left: A fan dressed as Captain America looks on after Belgium's 2-1 victory in extra time during World Cup match between Belgium and the US. Right: A Brazil fan wearing a mask depicting Neymar sits in the stands at the end of the World Cup semi-final match between Brazil and Germany at the Mineirao stadium in Belo Horizonte, Brazil.Laurence Griffiths—Getty Images; Leonhard Foeger—Reuters
Left: A donkey wears the colors of Brazil as it stands on a beach of Cumbucu, Brazil. Right: A dog wearing Brazilian soccer team colors walks on the Minhocao, a 2.2-mile stretch of highway, in Sao Paulo.
Left: A donkey wears the colors of Brazil as it stands on a beach of Cumbucu, Brazil. Right: A dog wearing Brazilian soccer team colors walks on the Minhocao, a 2.2-mile stretch of highway, in Sao Paulo.Aris Messini—AFP/Getty Images; Zackary Canepari—The New York Times
Match highlights are screened after the 2014 World Cup Group B soccer match between Spain and Chile at the Maracana stadium in Rio de Janeiro
Left: Match highlights are screened after the 2014 World Cup match between Spain and Chile in Rio de Janeiro, Brazil Right: The final score is projected on a screen after the 2014 World Cup semi-finals between Germany and Brazil in Belo Horizonte, BrazilRicardo Moraes—Reuters; Damir Sagolj—Reuters
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Left: Germany's Thomas Muller celebrates a goal during a semifinal match between Brazil and Germany. Right: Argentina's Javier Mascherano and Lionel Messi celebrate after winning their FIFA World Cup semi-final match against the Netherlands.Li Ga—Xinhua; Fabrice Coffrini—AFP/Getty Images

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